much than you bargained for. Americans have consumed indebtedness that exceeds $2 trillion dollars. About 40 % of all credit card users pay their bills in full every, which means that they need to pay along with interest every months. In this kind of situation, if you are one of the “revolvers”, that is, you carry a balance from month to month.
So that, what is the actual reason that let you receives this kind of credit debt in the end of each month? These are several reasons: 
1. Reduced income or expenses: Too often we delay bringing expenses in order to a reduction in income for a mass of good reasons and let debt fill the gap. The sooner you adjust to your new reality, whether it be temporary or permanent, the better off you'll be.
2. Poor money management: A money spending plan is essential. Without planning you may spend hundreds of dollars unnecessarily each month and end of the month you may have to pay extra changes and expenses on your credit card services.
3. Underemployment: Some of the unemployed citizen may misuse the credit cards. They may treat the credit debts as their future income. Down the road if you increase your income due to more hours, a second job, or a better job, then is the time to start adding in some of the previous spending before you become underemployed.
4. Gambling: call it America's new entertainment or the Indian's revenge. Either way this is a guarantees exchange of money from you to “the house”. It can be addictive, hard to stop and loans are freely available. Gambling establishment may be the only place you can mortgage your house while intoxicates and have it be legal.
5. Saving too little or not at all: The simplest way to avoid unwanted debt is to prepare for unexpected expenditures by saving three to six months of living expensive.
6. Banking on a windfall: Spending tomorrow's money today is very tempting. A planned job bonus may not be a sure thing. The inheritance that you believe will come your way may not. The lesson is don't spend the money until the check clears.
7. Financial illiteracy: Many people don't understand how money works and grows how to save and invest. You are responsible for your life and your money anyway. Financial mistake are increasingly expensive and complicated to resolve. Get educated and get in control.
There are a number of things you can do to prevent getting taken to the cleaners. 1. Restrict your use of credit. Cut up your credit cards. Stop using them whenever possible.
2. If you keep a card or two, pay them off full every month. Never carry a balance.
3. Set up a savings account for the unexpected.
4. Set up another account for semi-major repairs and expensive. Use that account to replace the washer, reroof the house and so on.
5. Set a budget and work on your self-discipline. Budgets need to be realistic to work, but they don't necessarily have to be hideously painful.
6. Pay cash for transient events like dining, entertainment, and travel. Charge that vacation and you'll be paying for it for a long, long time.
